MELBOURNE, AUSTRALIA: DGL Group Limited (ASX:DGL), a specialist chemicals business that manufactures, transports, stores and processes chemicals and hazardous waste, announced the strategic acquisition of Flexichem Australia Pty Ltd.
The acquisition price of $6.2M represented a valuation of 4.6 x FY21 normalised EBITDA. Consideration is $4.65M in cash and $1.55M in DGL shares at a 5-day VWAP calculated at the date of completion.
Situated in Adelaide South Australia, Flexichem specialises in complex silicone-based manufacturing targeted for water treatment, industrial and specialty product applications for both domestic and export customers.
The Flexichem acquisition gives DGL a strategic chemical manufacturing base in Adelaide with a strong technical base in chemical development and 1,200 tonnes of additional chemical manufacturing capacity.
Founder and CEO of DGL, Simon Henry, said: “The acquisition of Flexichem expands our manufacturing capabilities into South Australia, adds talent and IP on silicone- based manufacturing into DGL, and also opens up new export markets”.
Flexichem will vertically integrate into DGL’s manufacturing operations and strengthen service to DGL’s extensive customer base.
DGL is a well-established, founder-led, end to end chemicals business that manufactures, transports, stores and manages the processing of chemicals and hazardous waste. The Company operates a network of 54 sites, both owned and leased, across Australia and New Zealand. The Company has a strong track record of revenue and earnings growth.